Coinbase Chief Legal Officer Opposes CFTC's Proposed Rulemaking to Ban Certain Prediction Contracts

Paul Grewal, chief legal officer of Coinbase, opposes the U.S. Commodity Futures Trading Commission (CFTC)'s proposed rulemaking to ban certain prediction contracts, arguing that it is not well-founded. Grewal believes that the proposal has a definition problem, and the broad definition of "gambling" covers the Nobel Prize and the Oscar Award, etc. The definition is also inconsistent with legislative history, evaluating contracts as a category that is not in the public interest and exceeds the statutory authority of the CFTC. Previously, the U.S. CFTC voted in May to pass a rule that, if finalized, would ban betting on political races and other fields. Contracts for events, such as such contracts, are not allowed to be listed for trading or clearing through CFTC-registered entities. Earlier this week, Senator Elizabeth Warren urged CFTC Chairman Rostin Behnam to "quickly" finalize rules banning political event contracts. (The Block)